A drink manufacturer finds setting up a plant to make its own bottle caps expensive and technically difficult.Which of the following will be most helpful in solving the manufacturer's problem?
A) Outsourcing
B) Achieving economies of scale
C) Lowering input costs
D) Increasing bargaining power
E) Going for a vertical integration with a distributor

Question

Quizplus · Accepted Answer

Outsourcing can help the manufacturer overcome the difficulties and expense of setting up its own bottle cap plant. By outsourcing, the manufacturer can benefit from the resources and expertise of a specialized supplier, which can lead to lower costs and mitigate technical challenges. Additionally, outsourcing can enable the manufacturer to focus on its core competencies, such as beverage production and marketing.

A Drink Manufacturer Finds Setting Up a Plant to Make